Credit score is a three digit number which is used by banks and NBFCs to check how likely you are to pay back borrowed money. In other words, credit score determines your creditworthiness as a borrower. Your credit score can range anywhere between 300 - 900, and anything above the score of 720 is considered as a good credit score.
Credit score is an important factor in your financial life as it determines various factors for you. It also serves as a benchmark for lenders to determine whether they should give you a loan or not. And the rule of thumb is simple - the higher your score the higher your chances of getting a loan (with a lower interest rate) and/or Credit Card (with higher credit limit).
One can conclude that to get a better rate of interest for your next business, home, educational loan, a high credit score plays an important role.
But how can one increase their score is the big question.
Well here are some tips which you should follow to get a good credit score -
And Last but not the least,
Don't apply for too much credit – each application invites a hard enquiry, and that could hurt your Credit Score. Also, don't worry if you have an error in your report, you can always get it rectified provided you spot it at the right time
Conclusion Building or improving your credit score takes time, and there are no shortcuts for it. However, a secured Credit Card is the easiest way to speed up the process of building your credit score and taking it high!
The coolest and fastest way to improve your credit score is by getting early access to BharatNXT. BharatNXT app allows you to pay Bills with Credit Cards